Accor shares rise 5% after raising 2025 guidance despite soft Q3 revenue

Investing.com -- Accor SA (EPA:ACCP) shares rose more than 5% on Friday after the French hotel group raised its full-year profit guidance, launched a new €100 million share buyback and began preparatory work for a potential listing of its Ennismore lifestyle division, moves that offset weaker third-quarter revenue.

Accor said recurring EBITDA growth for 2025 is now expected between 11% and 12% at constant currency, compared with its previous 9% to 10% range. 

The company said the revision followed a €20 million cost-saving plan aimed at mitigating about €60 million in foreign exchange headwinds.

Chairman and Chief Executive Officer Sébastien Bazin said the group’s performance “demonstrates the appeal of its brands and the diversity of its geographical locations,” adding that profit protection measures “are proving effective and now enable us to raise our recurring EBITDA growth target for the year.”

Third-quarter revenue came in at €1.43 billion, down 4.6% year on year and about 1.5% below market consensus. 

RevPAR increased 0.8%, while net room growth reached 2.5%, broadly in line with expectations. 

Kepler Cheuvreux described the quarter as “soft,” but said the company’s raised guidance and strategic announcements were likely to trigger a “positive reaction.”

The brokerage said the Americas remained a key growth driver, with RevPAR up 7.1% in the quarter on continued pricing strength and firm corporate demand in Brazil. 

Luxury and Lifestyle again outperformed, with Management and Franchise revenue up 11.7% and RevPAR up 5%, which the broker said reflected the segment’s “resort exposure cushioning geopolitical noise.” 

It added that October was “expected to be the strongest month in Q4 25,” with no significant hit to RevPAR in France despite political uncertainty.

Morgan Stanley described the results as “mixed” but said the raised profit guidance and operational resilience supported its positive view on the stock. 

It noted that total quarterly revenue of €1.37 billion was around 5% below both its and consensus forecasts, largely due to asset disposals and the absence of Olympic-related revenue from last year. 

However, it said Accor’s Managed and Franchised division was “in line with expectations at €354 million” and showed a “much-improved mix” from earlier in the year.

Morgan Stanley said the company’s efficiency measures, which underpin the higher guidance, “will flow into FY26” and called the upgrade “a positive surprise.” The firm added that “improved disclosure” on the Services to Owners division, which now separates reimbursed costs from revenue-generating segments, would make earnings visibility clearer.

Accor’s board approved preparatory work for a possible stock market listing of Ennismore, its lifestyle and restaurant-brand business, and said it would retain control if the listing goes ahead. 

Kepler Cheuvreux estimated Ennismore generated about 15% of group EBITDA in 2024, while Morgan Stanley said it contributed €170 million that year, or about 14% of pre-overhead EBITDA.

Accor reaffirmed its 2025 RevPAR growth target of 3% to 4% and net unit growth of about 3.5%.